As the degree of sensitivity of a project to a single variable rises, the: lower
ID: 2749318 • Letter: A
Question
As the degree of sensitivity of a project to a single variable rises, the:
lower the forecasting risk of the project.
smaller the range of possible outcomes given a pre-defined range of values for the input.
more attention management should place on accurately forecasting the future value of that variable.
lower the maximum potential value of the project.
A.lower the forecasting risk of the project.
B.smaller the range of possible outcomes given a pre-defined range of values for the input.
C.more attention management should place on accurately forecasting the future value of that variable.
D.lower the maximum potential value of the project.
Explanation / Answer
C more attention management should place on accurately forecasting the future value of that variable.
Because greater sensitivity to variable is going to cause greater variability of project value, but the acceptable forecasting risk of project is lower so management should place more attention in forecasting the value.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.